IQ Option: how to trade economic news?
A professional trader having wise bidding experience in the financial market and in particular in the binaries` market, uses in his practice the principles of fundamental research. It is based on the constant monitoring of economic releases that have a very strong impact on the market, the timeliness of the reaction to which largely affects the decisions taken by the trader.
Notion of economic releases
Economic releases are publications of various economic reports and statistics, such as gross domestic product, unemployment, inflation, interest rates, retail sales, industrial production index, trade balance and other service and data.
Economic news of great significance for bidding
Of great importance are announcement produced by key representatives of major national financial institutions. For instance, of the Federal Reserve or the Department of Treasury in the USA or the Bank of England in Great Britain.
Let`s take as an example: on the 13th of June 2018, the USA Federal Reserve system raised the key interest rates by 0.25% (25 basis points), from 1.75% to 2%.
Other result, the dollar strengthens against the emerging market currencies and becomes three positions higher against the Japanese Yen.
Following the further announcements, a trader can get an availment by buying the US Dollar and selling the Japanese Yen.
How does the situation with economic releases take place on the IQ platform?
On the IQ platform, the news feed is available in the market announcement section, on the left-hand side panel.
In order to follow the economic releases, use the Forex calendar in the same section. Thus, everyone can have a successful bidding with IQ!
Here is an example, what news trading looks like in practice. Suppose it is 10:00, and by 11:10, information regarding the United States oil market initiatives is expected to be published. This e-release is associated with the forecast for the growth of the corresponding segment of the economy. The market moves up. Therefore, the purchase of the call option at 10:00 with the expiration time until 11:15 will be completed by the "in the money" operation, the availment will be obtained as a result of the fact that the trader was able to correctly assess and timely use the news he received from a reliable source.
Have a nice bidding experience with IQ Option!